Free Sample Tax Deferred Plan Policy
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Sample Tax Deferred Plan Policy


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Tax Deferred Plan

Policy Rationale

This plan provides employees with the option to make retirement contributions on a tax-deferred basis.  Taxes are deferred on employee contributions and investment earnings until date of retirement or savings are withdrawn.

Providers

The plan offers a menu of investment options through mutual funds.

Eligibility

All employees may participate through payroll deduction.

ABC Contribution

ABC does not contribute to this plan. ABC contributes to the ABC Retirement Plan.

Employee Contributions

Employee contributions can be a percentage of salary or fixed dollar amount.  Contributions are taken off each paycheck and are deducted from gross pay.  State and federal taxes are calculated on the lower salary, reducing the employee's taxable income.

Procedure

Employees who wish to participate must complete the appropriate forms.  Forms are available through the Benefits Division.

Disclaimer

While every attempt has been made to ensure the accuracy of the above summary, the actual Plan text will prevail in the event of any discrepancy as this policy does not constitute a legal document.


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